CO129-591-7 Estimates for 1946-1947 12-12-1945 - 14-3-1947 — Page 128

INWARD

TELEGRAM

1

JUN

21

Code

COPY FOR REGIE

FROM HONG KONG (Sir M. Young)

COLONIES.

IMMEDIATE

No. 297

TO S. OF S

D. 6th June, 1946, R. 6th

n

15.50 hrs.

REC

946

425

GISTRY

1

Your No. 202.

Estimaten,

54126/1/46.

20.

Figure of £1,400,000 (sterling) for deficit quoted

in your telegram appears to have been based on the

aasumption that revenue amounting to 15 million dollars would be collected before 31st Meroh in respect of tax leviable under Var Revenue Ordinance,

20 It now seems doubtful whether zevenue from this source will, in fact, be received during the period in question, Any such a revenue would relate to year of assessment which commenced lat April 1945 and the fact that we have to deal with number of separate taxes instead of one straightforward income tax complicates matters considerably. As only one merbar of the taxation staff so far returned, as the Oolony was far from normal even aŝtar Christmas, seems certain that some of these taxes such as the Busines8 Profits Tax could not be collected in respect of any period prior to the year of assessment commencing let April, 1946 but the whole matter is still under consideration. POP purposes of estimating probable deficit, any return under the War Revenue Ordiname has accordingly been ignored.

7 30 In Civil Affairs telegram No. 3685, if loan expenditure is ignored completely, personal emolumenta were estimated at 224 and other charges at 572 million dollars Hong Kong) Latter included 7 million for rehabilitation allowances under miscellaneous head, Following factors, which have since arisen, have changed the situation considerably

(a)

and